Deregulation guide
Your utility owns the wires. You can choose the energy.
- 01
Check your area
Retail choice exists only in certain utility territories and varies by address.
- 02
Read your bill
Find the supply rate and monthly usage. That’s your baseline.
- 03
Compare plans
Weigh rate, term, fees, renewable content and ETF together.
- 04
Decide, or don’t
Staying with your utility default is always an option.
Why deregulation exists
Understanding Your Energy Bill: Supply vs. Delivery
Your bill is two businesses stapled together. One owns the wires. The other buys the energy that flows through them. Only the second one is open to choice.
Delivery / Transmission charges Regulated
Kept with your local utility: poles, wires, meters and repairs. These can't be changed by switching suppliers.
Generation / Supply charges Open to choice
The energy itself. Picking a different supplier changes this line item without changing your utility company.
Illustrative statement
Residential Electric Service
1,000 kWh
30 days
- ACustomer charge
- $10.25
- ADistribution 1,000 kWh @ 6.21¢
- $62.10
- ATransmission
- $14.80
- BGeneration supply 1,000 kWh @ 11.2¢
- $112.00
Illustrative figures only. Actual charges vary by utility and service address.
Glossary
- Price to Compare (PTC)
- Your utility’s default supply rate. The benchmark any supplier offer should beat, including fees.
- Fixed rate
- Supply price stays the same for the contract term. Predictable, but you won’t benefit if market prices drop.
- Variable rate
- Supply price can change month to month. Often no long commitment, but less predictable.
- Early termination fee (ETF)
- A charge for leaving a fixed contract before it ends. Some plans have none.
- kWh
- Kilowatt-hour, the unit for electricity. Electric rates here are in cents per kWh.
- Therm
- The unit for natural gas. Gas rates here are in dollars per therm and estimated separately from electricity.
A little more clarity
Good questions.
Clear answers.
A few things worth knowing before you compare energy supply options.
Your next step starts here
Questions about your utility service?
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